How to Improve your Credit Score

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How to improve your credit score

In order to improve your credit score, you need to know how the score has been calculated.

When applying for any lending or entering into a financial contract, the company will check your credit score.  The score you are given is based on the information contained in your credit report.  So, if you’ve been advised your score is too low for a company to consider lending to you, you need to find out why.  The company may not have advised you what your actual score is, so first, you need to apply for it by following the guide below:

  • Check your free Experian credit score.   An Experian account lets you access your Experian Credit Score for free which is updated every 30 days each time you log in.  Your credit score could make the difference to your chance of getting a mortgage, and Experian believes that everybody should be able to access it without paying a penny.  Buying your first home is an exciting life step and you want to ensure you are in the best position to be qualified for a mortgage. Lenders look at several factors including, your salary, debt and savings when considering your application. Your score is a number from 0-999 that’s based on the information in your credit report.  The higher your score, the greater your chance of getting the best mortgage deals.
  • If you have been rejected a mortgage as a result of a poor credit score, or simply want to improve your score before applying for a mortgage, you can do this by applying for a credit report with Experian (CreditExpert).*
  • *For CreditExpert a monthly fee of £14.99 applies after your free trial. You may cancel during your 30-day free trial without charge. New customers only. Free trial period starts on registration – further ID verification may be required to access full service which may take up to 5 days.

How to improve your credit score/How to get a good credit rating:

ALWAYS check with an independent financial advisor what method works best for your circumstances.  This is only a guide, it does not constitute obtaining independent financial and legal advice.*

  1. Check your free Experian credit score (read information above first).
  2. Once you have your score, if there is a problem with it, you can always apply for a copy of your credit report to see what is causing any issues.  For guidance, click here.
  3. Once you have your credit report, you must check it carefully and if you need to, you should dispute any incorrect/negative information straight away.  For guidance click here.
  4. You should ensure that you are listed on the electoral roll.
  5. If you have a bank overdraft, try to pay it off as quickly as possible.
  6. Pay off your late payments and set up a direct debit so that you don’t miss any future ones.
  7. Cancel credit cards that are no longer in use and do not apply for any new ones.
  8. Do not apply for any borrowing for at least a few months until you have resolved any problems with companies listed in the report.
  9. Some of these steps will help to boost your credit score instantly.

If your score is low because you have no financial history or credit rating:

ALWAYS check with an independent financial advisor what method works best for your circumstances.  This is only a guide, it does not constitute obtaining independent financial and legal advice.*

  1. Ensure that you are listed on the electoral roll.
  2. If you have never borrowed before, consider getting a credit card with a very low spending limit, a store card or a mobile phone contract.
  3. Ensure that you pay the balance at the end of each month and never miss a payment.
  4. If you have a credit card balance, set up a direct debit so that you don’t miss payments.

If your score is low because you have incorrect information on your credit report:

ALWAYS check with an independent financial advisor what method works best for your circumstances.  This is only a guide, it does not constitute obtaining independent financial and legal advice.*

  1. Ensure that you are listed on the electoral roll.
  2. Do not apply for any borrowing until you have resolved any problems with any companies listed in your credit report.  Click here for guidance.

How long does it take to build your credit score

It takes many months to build a credit score.  Keep checking your score each month to check for any improvements.

For the most up to date guidance on this aspect, click here.

How long does credit score take to recover

For the most up to date guidance on this aspect, click here.

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*This website and the authors of the articles contained herein have not been approved or authorised by the FCA or by any financial regulatory authority.  If you require regulated financial advice you should consult with an independent financial adviser.

*The guides and information on this website can be used to manage all aspects of your home/property.  Where a specific product or service is linked to a third party, we always recommend you seek advice from an independent entity (financial advisor/mortgage lender/broker) and ensure that you have fully researched any specific products and services yourself before committing to any purchase or entering into any contract. Affiliate links may appear in this guide.

*If you use any of the information contained on this website, you do so at your own risk and we cannot accept any responsibility or liability if anything goes wrong.

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